Why are airline tickets priced this way?

Question

I'm planning a trip to Latin America  next year. To have as much freedom as possible, I'm planning to buy a one way ticket there, and then when I'm ready to return, just buy another one-way ticket back. To estimate a budget, I am looking up prices for both ways, when I discovered something that confused me. A flight from San Salvador to Houston (where I live) is $450 without stops. From the same exact airline, there is a flight from San Salvador to Dallas/Ft. Worth with a stop in Houston for $200 on the same day. Prices for flights generally go up with the number of stops the plane makes. So how is this possible? Is this a trick that the website uses to make extra money? Or is this legitimately how airline tickets get priced? If so, why?

? · Accepted Answer

Between major big cities like Houston, direct flights usually cost more than flights with stops.  If both routes cost the same, every passenger would want to take the direct flight, who wants to waste time and go through deplaning and boarding 2 or even 3 times.  With stops it means the same route is exposed to more potential passengers and more tickets could be sold and the fare could be lower.

Roger K · Answer

This is very common. 

IF you are thinking that you could buy a ticket on that Dallas/Houston/San Salvador flight, and board in Houston - forget it. When you do not show up for the first plane the entire remainder of the itinerary (both ways if it is round trip), will be canceled.

tonalc2 · Answer

Actually, prices go down with multiple stops, since people usually want a direct flight. 

And a recommendation: it might be more cost-effective to book a round trip flight, then change the return date if need be. There will be a small fee for the change, but probably less than what it would cost for two one-way tickets (which are usually more expensive).

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Why are airline tickets priced this way?

3 Answers